Amazon Logistics Fees: A Comprehensive Guide

Understanding Amazon Logistics Fees

Amazon's fulfillment services are designed to help sellers manage their inventory and ship products to customers efficiently. The fees are structured to cover the costs of storage, handling, shipping, and various optional services.

Key Fee Components:

• Fulfillment by Amazon (FBA) Fees: These include fees for storage, fulfillment, and optional services for products sold on Amazon.
• Multichannel Fulfillment (MCF) Fees: These fees apply to products sold through channels other than Amazon.

Fee Calculation Overview:

The total fulfillment fee is generally calculated by summing up the following components:

1. Fulfillment Fee: A per-unit fee based on the product's dimensions and weight.
2. Storage Fee: Charged monthly based on the volume and duration of inventory stored in Amazon's fulfillment centers.
3. Optional Services Fees: Charges for services like labeling, packaging, returns processing, and more.
4. Referral Fee: A percentage of the selling price, varying by product category.

FBA Fee Breakdown:

1. Fulfillment Fees:

Fulfillment fees vary based on product size, weight, and the fulfillment program used (e.g., standard, low-price, Pan-European, European Fulfillment Network). Detailed tables provide specific rates for different product categories and regions, including the UK, Germany (DE), France (FR), Italy (IT), Spain (ES), Netherlands (NL), Sweden (SE), Poland (PL), Belgium (BE), and Czech Republic (CZ).

2. Storage Fees:

Monthly storage fees are charged based on the cubic meter (or cubic foot in the UK) of inventory stored. Fees can vary by month and by product category (e.g., standard-size, large-size, apparel, dangerous goods). Additional surcharges may apply for:

• Inventory Storage Overutilization: Based on the inventory storage utilization ratio.
• Aged Inventory Surcharge: For inventory stored beyond a certain period (e.g., over 271 days).

3. Optional Services Fees:

These fees cover various services provided by Amazon, including:

• Labeling Service: For applying Amazon-compliant labels.
• Packaging Services: Including bagging, bubble wrap, and opaque poly bagging.
• Return Processing Fees: For handling customer returns, with specific rates for high-return-rate products.
• Liquidation Services: For selling off excess inventory.
• Removal Orders: For returning inventory to the seller.

4. Referral Fees:

Referral fees are charged as a percentage of the selling price and differ across product categories. These fees are generally between 8% and 15%, with some exceptions and minimum fees applying. The fee is calculated based on the offer price provided by the seller.

Multichannel Fulfillment (MCF) Fees:

MCF fees are structured similarly to FBA fees, covering fulfillment, storage, and optional services for orders fulfilled through channels other than Amazon. Rates are provided for local and cross-border shipments within Europe.

Key Programs and Considerations:

• Pan-European Program: Allows sellers to store inventory in local fulfillment centers across Europe for distribution, potentially benefiting from local FBA fees and faster delivery.
• European Fulfillment Network (EFN): Enables sellers to reach customers across all EU marketplaces by storing inventory in local fulfillment centers and fulfilling orders from other marketplaces.
• Central European Program: Allows sellers with German inventory to utilize Amazon's logistics network in Poland and the Czech Republic, potentially offering cost savings.
• Ship in Own Container (SIOC) Program: Offers discounts on fulfillment fees for products shipped in their original packaging.

Important Notes:

• All fees are subject to change and may be subject to VAT where applicable.
• Sellers are responsible for understanding and complying with all applicable tax regulations, including VAT.
• Amazon's fulfillment fees are based on the product's shipping weight or dimensional weight, whichever is greater, for most items.

Resources:

For detailed fee structures, definitions, and additional information, sellers are encouraged to consult the following resources:

• Seller Central
• Detailed fee pages, definitions, and additional information
• Seller Forums
• Seller Support
• Income and Expense Calculator